How to open a NPS account?

One of the most frequent questions on the NPS post is how one can open a NPS account, and though things have improved in the past few months – most of the times opening a NPS account is not as easy as it should be.

I tried to look at the various ways you can open a NPS account, and thought I’d make a list of NPS account opening options I’m aware of. In doing this research I found that there is reasonably good information about where you can go to open an account, but it’s just that it’s not very well known.

For instance, on the PFRDA website – you can see the number of PoP-SP (Point of Presence Service Providers) (pdf) and it’s quite clear that SBI with 3,820 registered branches is quite clearly in the lead, followed by Alankit Assignments with 890 branches, India Post NPS Nodal Office with 807 branches and State Bank of Hyderabad with 714 branches.

This is an interesting stat, and the PDF itself has got a list of number of all PoPs, and gives an approximate idea of where you’re more likely get someone who can open an account for you.

With that said let’s take a look at the various options to open a NPS account.

Open a NPS Account with ICICI DIRECT

This is probably the easiest way to open a NPS account because if you have a ICICI DIRECT account, then you can log into your account and open a NPS account without any additional documentation. They don’t currently have the facility to open a Tier II account, but say that it will be introduced shortly.

I don’t know of any other online broker other than ICICI at this point in time that’s offering this service.

Open a NPS account through CAMS Online

CAMS is another registered PoP-SP that allows you to fill up the form online and enter information to open a NPS account.

This info was left by Dr. Shetti in a comment, and I’m not familiar with how the entire process looks like, so before you start entering the details there I suggest giving them a call and find out more.

If someone has first hand experience with this then please do leave a comment.

Go to a bank branch that’s a registered NPS PoP-SP

This is going to be the way most people open a NPS account – going to a bank branch and opening one. The trouble is that a lot of people find that when they go to the bank – the employees don’t even know what NPS is!

The PFRDA website has this excel sheet which has a list of all branches along with address and phone numbers where you can open a NPS account. So, if you’re in Gurgaon – you can just search for that in this file and it will show you the branch that’s present near you.

If you don’t have an ICICI Direct account and are interested in opening a NPS account, then this file should prove to be a good starting point for you as it will tell you where you can go and find some people who actually know what NPS is.

In due time – the number of branches will increase, and it will become easier to open an account, but till then some of you might have to struggle a little bit with this.

I had a look at the returns of NPS by different fund managers and the equity based returns were really bad esp with SBI fund manager . returns in other options seems to be much better. I thought of opening an NPS account but i am not very happy with the performance really. I would probably wait till DTC kicks in to have another look at it.
btw for others interested in opening an account can have a look at http://www.fundsindia.com. I have a mutual fund account with them and they have NPS as well. ( note: I am just a customer of fundsindia)

Hi guys,
I recently opened an NPS Account through CAMS by going to their office although i had an ICICI Direct account. A few points to note.
1.The drawbacks of opening through an ICICI Direct account are that
a.You can’t open the Tier II Account (as pointed out earlier by Manshu)
b.You won’t get a PRAN (Permanent Retirement Account Number) Card although you will be given the number
c. You still will need to login through a separate website to view your NPS account details i.e you cannot do it through ICICI Direct i.e no added benefit of opening through ICICI Direct
2.ECS facility is available through CAMS
3.Unlike mentioned earlier in one of the posts, i was told that SBI guys were doing a pretty decent job and gave around 12% returns in the equity option
4.You need to submit a Cancelled Cheque for the ECS facility apart from Address Proof, PAN Card copy, Photos, Completed Appl Form, Cheque for initial payment etc…
5.When you are opening an account, don’t forget to ask for
a.ECS form
b.”Swavalamban’ form : As per the ‘Swavalamban Scheme’. the GOI will be chipping in Rs 1000/- every year for the first three years as their contribution and i was told that it was for five years for State Govt Employees. This scheme (for three years) was for all individuals – irrespective of their employment in Public / Private Sector – i was told.

Dear Manshu,
From what i could understand, ICICI Direct is an Online option for ‘Applying for NPS’. However, for checking your NPS account, you still will need to log on to the website details given to you when you get your PRAN Card i.e T-Pin & I – Pin…So, i believe that ICICI Direct enables a large proportion of Demat account holders to apply for an NPS Account rather than take the trouble of going to a POP – SP. However, there are drawbacks as i have mentioned earlier.
If you don’t opt for ECS, payments have to made at regular intervals pref. Quarterly. This is done by filling up papers and attaching a Cheque for the same. The advantage over ECS is that, for those class of employees who are not sure of how much amount to deposit each time (for various reasons like unsure of pay, expenditure etc….), this is a better option as you deposit in your NPS account as much as you can afford to (ensuring that each deposit is not less than Rs 500 and Minimum deposit in your Tier I account every year is Rs 6000). And once you opt for ECS, you don’t have to mail papers.
It is better to make quarterly payments as they levy a charge for each transaction!!!! Monthly payments i believe, are possible at higher charges!!!

I recently opened through CAMS Chennai but I do not think the online option works. They have the form online but you still have to visit their branch, handover documents cheque etc. It is straight forward and CAMS is doing it all the friendliness it warrants to do so. Take a BLACK PEN (and two copies each of required documents) with you when you go. ASK FOR SWAVALAMBAN declaration as well….I received the PRAN kit etc. within 10-15 days.

ECS facility is present but I don’t know if that makes you liable for a fixed commitment; why is that though? I mean why would it make you liable for a monthly commitment or something like that. Where have you opened the account?

I have opened it thru ICICI Bank (One of the PoS). Say I want to register for online payment (like we register our credit card) what do I need. CRA has provided the PRAN Card, IPIN/TPIN..I tried contacting over the Toll Free No..but was not succesful reaching out anybody.

I would like to ask whether the NPS scheme will gather steam post DTC, when the ELSS option will not be available anymore?
Also how advisable is it to invest in NPS, both for getting Tax deduction as well as Investing for retirement.
I had read in one research article that these schemes as of now are not doing well, some of them having -ve figures for last 3yrs returns.

Mihir – that will be anyone’s guess, and I personally feel that if have an option you can look at other avenues for investment till there is some more clarity on how and the NPS money will be invested for annuities, and the funds have a longer track record as well.

No one wants to promote this scheme as the commission is way too less. I have tried for last 6 months to get any agent to come and open 10 NPS Lite accounts for my driver, office boy, maid etc but no one will come. They will note even give forms or help fill the form up. I tried with Union Bank of India, South Indian Bank, UTI, several independent financial services agents/advisors.

Appreciate your interest… did you try CAMS, Chennai. They might help you… if not why not just visit their office and get it all done within 1-2 hours (take two sets of all address, ID proof, cancelled cheque, photo etc.).

Dear Sir,
How can I invest in NPS for getting pension at the age of 52 years. Is it possible to invest and at the same time get good pension. How to open NPS account? Is this facility available in PNB also.
Please guide

Individuals who are trying to open this on their own are facing problems both at the time of opening an account, and then withdrawing money as well. I’d rather suggest you look at opening a fixed deposit with a bank, and buying some mutual funds to build a retirement corpus.

This is a very unfair and motivated statement, I think. At CAMS Chennai they were so friendly and got everything done very smoothly. As an investor all you have to do is take with you documentation (ID, address proof, photo etc. in two sets and a black pen) and make relevant choices on the form and sign and handover. You receive the kit within 15 – 20 days from the PRAN authorities and then you can keep track of NAV through online for both Tier I and II. Swambalan rebate of Rs.1000 that you get from Govt. is added benefit (for other Mutual Fund or any other option you would have rather lost this much money upfront, at the very minimum !)

If motivated commenters (who want NPS to increase commission, add more layers of agents etc.) are discouraging please do not accept it. See for yourself. Visit and take that effort, after all it is your money, you want pension and at the lowest possible loss to yourself (through fees to agents etc.). So, take that little effort and make sure you get it.

Sridhar – . This is a blog and I don’t sell any products, and neither am I an agent of anything. My statement is based on the fact that people are generally facing troubles in opening a NPS account, and when they eventually do open one, they are having trouble closing it or getting access to the money they have. One individual who tried to get his funds got a response that there is no clarity on how funds can be accessed to get retirement.

Please understand that a lot of time goes in maintaining this blog, and replying to each comment individually. I’m not selling NPS, MFs, Gold ETFs, Gold Coins, Shares, IPOs, Insurance, Books or anything else on this blog. Read the About to know more about what this is and please don’t point fingers at me because it doesn’t make any difference to me what someone buys; I don’t stand to gain either way.

I am 38 yrs old, if i contribute Rs. 2500.00 per month in NPS than after retirment how much i can get ?? secondly if i want atleast Rs. 25000.00 as pension than what will be the contribution per month ??

Hi
I am a sftware engineer getting 6 lakhs p.a.I am aged 28.Is it a good idea to open a NPS account? To get a descent pension after 60 years of age how much you suggest me to invest per month?
With Regards/

Vishnu – There’s a lot of confusion with respect to NPS, and at present I wouldn’t advice anyone to open a NPS account. You have a long time to go before retirement so continue saving and investing in other places, and that will act in the same or even better way as opening a NPS account.

Hi,
I am from kolkata. For a long time I was trying to open a NPS account and get th PRAN card. First I was checking with the list of POS (given in the PFRDA website) near my locality. Axis bank, India Post both refused to do so. However, they agreed that they received the circular for the same. They are more interested to sell their insurance product. Then I called Alankit Assignment (R N Mukherjee branch) and they finally help me to open the NPS.

So, if you are from kolkata, directly go to Alankit office and open NPS, without wasting your time with the other POS (like Axis bank or Post office).

I had opened an NPS account through CAMS last year, made an one time payment and did not opt for ECS as I was not sure how much I should be putting into the account. Is it possible to make a lump-sum payment online without going to CAMS office?

I have an NPS A/C with ICICI as my Fund manager. I would like to know the rate of return for last yr for same. Recently there was a similar declaration for the govt. employee funds which was little more than 9% (SBI, UTI, LIC). I would like to know the rate of return for the private sector by various fund managers.

iii) service charge by the PoP of Rs 40 for registration and Rs 20 per transaction,

iv) fund management charge of 9 paise for every Rs10,000 of funds under management and

v) custodial charges of 0.0075% p.a. for electronic investments and 0.05% p.a. for physical investments. Despite the multiple charges, NPS is one of cheapest pension products available in the Indian financial market.

I went to open the pension account in SBI Madhapur, Hyderabad yesterday (30th March 2013). This branch is listed in the xls sheet you have refered in this article. To my surprise, the Branch Manager (Operations) refused that they deal with NPS accounts. When I told him that your branch is listed on PFRDA website as POP-SP, he blankly told that they dont have any information on working with NPS accounts.
I tried raising this issue by making a complaign on SBI website. Also I mailed to PFRDA grevience mailbox (grc@pfrda.org.in) and SBI’s mail box to handle NPS queries (nps.ccmum@sbi.co.in ) but did not get any response.

Has anybody faced similar situation? If yes, how did you deal with it?